Response to allegations that energy suppliers have paid more for electricity than the market rate
A spokesperson for Ofgem said:
“Ofgem has not seen the details of the Labour Party’s analysis that forms the basis of its allegations that consumers have been overcharged for their energy. We would clearly consider more detailed information as part of our state of the market report in March. Ofgem regularly looks at the relationship between wholesale and retail prices and our own analysis of the evidence does not support this allegation. Where we have found evidence that firms have not played by the rules we have acted. Since 2010 we have imposed over £75 million of penalties and redress payments on the industry and we continue to work to ensure the energy market is simpler, clearer and fairer for consumers.
“However, we are already addressing concerns about transparency through our reform programme. This includes increasing transparency in the wholesale electricity market by pushing through reforms to increase trading in the market and to ensure the Big Six Energy suppliers have to post out two years in advance the prices they will sell electricity in the forward markets.”
Notes to editors
- Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas and Electricity Markets Authority, the regulator of the gas and electricity industries in Great Britain. The Authority’s functions are set out mainly in the Gas Act 1986, the Electricity Act 1989, the Competition Act 1998 and the Utilities Act 2000. In this note, the functions of the Authority under all the relevant Acts are, for simplicity, described as the functions of Ofgem.
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